GGRAsia – RGB to supply 2k third-party slots to Pagcor for US$81mln

RGB to supply 2k third-party slots to Pagcor for US$81mln

Jun 03, 2024 Newsdesk Latest News, Philippines, Top of the deck

Casino equipment supplier and distributor RGB International Bhd says it has been awarded a contract by the Philippine Amusement and Gaming Corp (Pagcor) – the regulator and also an operator of casinos in that country – to supply the latter with a total of 1,968 slot machines.

The total value of the contract is just above US$81.3 million, said RGB in a filing on Thursday to the Malaysian stock exchange, where the firm is listed.

The contract award, via RGB’s Macau unit, “involves supplying of 1,968 electronic gaming machines (EGMs) along with their related accessories, LED signage and displays,” stated the parent company.

It added: “The services to be provided under this project include logistics arrangement, installation of EGMs, signage and displays, as well as engineering technical and product trainings”.

The order is for EGMs of third-party brands, namely: 888 units of Light & Wonder; 888 units of Aristocrat; 150 units of Konami; and 42 units of KL Saberi.

RGB’s filing did not mention where the product would be deployed.

Pagcor operates a network of land-based casinos in the Philippines under the Casino Filipino brand. The chain includes more than 40 branches and so-called ‘satellite-casinos’, operating in leased venues from third parties.

Pagcor has previously announced an upgrade to its Casino Filipino chain, including the acquisition of 3,000 new slot machines. The modernisation effort was said to be done before a process for disposal of the Casino Filipino network is launched, as Pagcor plans to end its operating functions to focus on regulatory work.

RGB said it expected the contract with Pagcor to “contribute positively” to the firm’s earnings for the current financial year.

RGB reported revenue of MYR210.1 million (US$44.6 million) for the first quarter of 2024, up 120.8 percent from a year ago. Revenue was up 93.4 percent judged quarter-on-quarter, according to a filing last week. The firm posted a first-quarter profit attributable to its shareholders of just below MYR22.2 million, compared to a profit of MYR10.5 million a year earlier.

In April, RGB said one of its units acquired 86 gaming machines operated in the Philippines, for a consideration of just over US$2.2 million. The group is entitled to a 20-percent share of the winnings from the 86 machines, net of relevant taxes and joint expenses, said the company at the time.